Foreign currency Valuation
I want to understand, the postings of the foreign currency valuation Below are the details:
|Date||Invoice Amount||Valuated Amount|
|15.09.2014||623,000||542,000- (at the time of month end valuation)|
|12.03.2015||623,000||623,000 (at the time of payment)|
At the time of payment entries which got posted are:
|43001||Clearing Account AP||81000|
|59700||Realized Forex gain||23000|
My question is:
Valuated difference is getting posted to "clearing account AP"
623000 - 542000 = 81000
Realized forex gain is getting posted as:
542000 - 519000 = 23000
Now entry of amount "81000" is open in the clearing account AP, how shall I clear this entry against which line item or posting?
Need your inputs in understanding the concept, Thanks all!